| | | In the case of timberlands owned by an entity that is | | treated as a pass-through entity for income tax purposes, | | the land must be treated as eligible timberland if ownership | | and use of the land by the pass-through entity satisfies the | | requirements of this paragraph. If the owner of the | | eligible timberlands is an S corporation, the taxpayer must | | subtract the owner's pro rata share of the gain. If the | | owner of the timberlands is a partnership or limited | | liability company taxed as a partnership, the taxpayer must | | subtract the taxpayer's distributive share of the gain, | | subject to the percentage limitations provided in this | | paragraph. |
|
| | | This modification may not reduce Maine taxable income to | | less than zero. To the extent this modification results in | | Maine taxable income that is less than zero for the taxable | | year, the excess negative modification amount may be carried | | forward and applied as a subtraction modification for up to | | 10 taxable years. The entire amount of the excess negative | | modification must be carried to the earliest of the taxable | | years to which, by reason of this subsection, the negative | | modification may be carried and then to each of the other | | taxable years to the extent the unused negative modification | | is not used for a prior taxable year. Earlier carry-forward | | modifications must be used before newer modifications | generated in later years. |
|
| | | Sec. 28. 36 MRSA §5122, sub-§2, ¶V is enacted to read: |
|
| | | V. The taxpayer's pro rata share of an amount that was | | previously added back to federal taxable income pursuant to | | section 5200-A, subsection 1, paragraph H by an S | | corporation of which the taxpayer is a shareholder and by | | which, absent the S corporation election, the corporation | | could have reduced its federal taxable income for the | | taxable year pursuant to section 5200-A, subsection 2, | | paragraph H; |
|
| | | Sec. 29. 36 MRSA §5122, sub-§2, ¶W is enacted to read: |
|
| | | W. The taxpayer's pro rata share of an amount that was | | previously added back to federal taxable income pursuant to | | section 5200-A, subsection 1, paragraph M by an S | | corporation of which the taxpayer is a shareholder and by | | which, absent the S corporation election, the corporation | | could have reduced its federal taxable income for the | | taxable year pursuant to section 5200-A, subsection 2, | | paragraph L; and |
|
| | | Sec. 30. 36 MRSA §5122, sub-§2, ¶X is enacted to read: |
|
|
